Exercise 11-7: Production lot sizing
Input
Annual demand, D 260
Production rate, P 1,040
Cost per unit, C 2,000.00$
Holding cost, h 25%
Fixed cost per order, S 10,000.00$
Optimal Lot Size
Economic production quantity, QP118
Number of setups per year 2.21
Annual setup cost 22,079.40$
Annual holding cost 22,079.40$